Investing.com -- Eni, the Italian multinational oil and gas company, has revealed an exclusivity agreement with Ares Management (NYSE:ARES) for the sale of a 20% stake in Plenitude.
The gross equity valuation of the deal is estimated to be between €9.8 billion to €10.2 billion. The valuation is similar to the 2023 agreement, where Eni sold a 10% stake in Plenitude to EIP.
The potential sale to Ares Management could result in a gross equity value increase of €1.8 billion to €2.2 billion over the 18-month period, driven by EBITDA growth.
This divestment aligns with Eni’s asset valorization plan. If the deal is finalized, it will allow Eni to far exceed its target of €2 billion to €2.5 billion in valorization or divestment proceeds set for FY25.
According to Jefferies, this transaction could help Eni lower its net debt to equity ratio to approximately 16% by the end of the year. This would be a significant decrease, from 22% at the end of 4Q24 and 18% at the end of 1Q25.
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